OptiNose(US:OPTN)2024-08-11 11:17Financial Data and Key Metrics Changes - OptiNose reported $20.5 million in XHANCE net revenue for Q2 2024, a 5% increase from $19.5 million in Q2 2023 [21] - The average net revenue per prescription for Q2 2024 was $309, a 44% increase compared to $214 in Q2 2023 [21] - For the first half of 2024, XHANCE net revenue was $35.4 million, a 13% increase from $31.3 million in the first half of 2023 [23] - The average net revenue per prescription for the first half of 2024 was $269, a 51% increase from $178 in the first half of 2023 [23] - SG&A plus R&D expenses for Q2 2024 were $25.1 million, up from $21.1 million in Q2 2023 [22] Business Line Data and Key Metrics Changes - The launch of XHANCE for chronic sinusitis began in Q2 2024, with a focus on educating prescribers and increasing adoption [4][5] - The company aims for peak year sales of at least $300 million for XHANCE in chronic sinusitis by 2025 [6] - The net revenue guidance for XHANCE for full year 2024 has been narrowed to $85 million to $90 million, reflecting a growth of 20% to 27% compared to 2023 [11][26] Market Data and Key Metrics Changes - XHANCE was added to large Express Scripts' national formularies, improving access for over 24 million lives [17] - The new preferred formulary coverage simplifies the prescribing process, eliminating prior authorization paperwork for prescribers [18] Company Strategy and Development Direction - The company is focusing on profitable business lines and moving away from lower profit and unprofitable business [10] - The strategy includes leveraging a central intake pharmacy model (HUB) to improve patient support and prescription fulfillment [20] - The management believes that the chronic sinusitis indication will facilitate commercial partnerships and expand market reach [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term potential of XHANCE, indicating that the company is in the early stages of its launch [27] - The company anticipates gradual growth in the coming quarters as it implements insurance coverage changes and educates prescribers [9] - Management expects to achieve positive income from operations for the full year 2025 [26] Other Important Information - The company has increased its expectation for XHANCE net revenue per prescription for full year 2024 to at least $250, up from a previous expectation of at least $230 [10] - The company plans to maintain operating expenses modestly incremental to 2023 levels to support promotional efforts [24] Q&A Session Summary Question: What are your assumptions for your path to profitability? - Management expects revenue growth of 20% to 27% for the year and believes peak revenue potential for XHANCE is approximately $300 million, indicating a clear pathway to profitability by 2025 [30] Question: Are you confident about meeting the revenue covenant in the third quarter? - Management is confident about meeting the revenue covenant, expecting to maintain compliance with the target of $72.5 million for the third quarter [31] Question: Is the average net revenue per prescription of $250 conservative? - Management acknowledges the current average net revenue per prescription is $269 and allows for flexibility in their estimates due to potential lower profit volumes [32][33] Question: What has been the engagement with payers regarding coverage expansion? - Payers are noticing increased demand for XHANCE due to the new indication, leading to improved access and coverage discussions [35]